TARIFF ALTERATIONS.

Auckland Star, Volume LII, Issue 280, 24 November 1921, Page 7

TARIFF ALTERATIONS.

EFFECT ON THE HOUSEHOLD

SOME INCREASES THAT MUST PASS ON. DRIED FRUITS AND MACARONI. KEROSENE FREE AGAIN. The changes made yesterday in the tariff on articles of domestic use are likely to affect the price of the commodity to the consumer in several instances. "For instance," said a merchant who was consulted this morning, "the tariff on dried applee, apricots, add peaches from iforeign aoirrces is doubled. This should give a lift to the lcV?al (producer of these d-ried fruits, though theTe is at present not a great deal done in that industry in this country, but assistance to the extent of ■another 2d per lb may stimulate the industry, especially ac now all Australian fruit will be loaded with the foreign tariff rates. At present most of the dried fruit in tiiese lines which. w« use in New Zealand comes from 'Australia, which means "that it Will have to pay 4d per lb in duty, where previously it paid nothing. That, of course, will have to be passed on to the consumer." Macaroni and vermicelli will also be affected. From behrg allowed in free from British countries, these artkdee will now pay about Id per lb, and about 2d under the third schedule. Practically all we use comes from Australia, and will therefore have to pay the extra 2d in duty under the new tariff. Cream of tartar, which was free before, now has to pay 20 per cent., which means about Md per lb. Owing, however, to the great fall in price of this commodity it can easily stand the 3d duty. Confectionery, not otherwise enumerated, is not much affected by the alteration. Under the old tariff it was 2d ■per lb for British and 20 per cent, for foreign. The foreign rate is now increased lo about 25 per cent. Walnuts have been put back to the old tariff of 2d per lb. Kerosene is also put back to the position it occupied in the tariff before the recent alterations. In the old tariff it was admitted free, then the new tariff put on 1/ per case, and now the new duty is removed and it is admitted free again. It will however make no difference to the consumer, as the 1/ duty had not been passed on. AUSTRALIA'S POSITION. REMOVED FROM FIRST SCHEDULE. f MANUFACTURERS APPROVE. WILL PREVENT DUMPING-. In the opinion of Mr. Syd. J. Harbutt, who was one of the founders of the Auckland lnriustVia.l Assopiivtion, Si* - John Luke hit the nail on the head when he remarked in the House that had the position in regard to Australia and the tariff remained unchanged Australia would have become the workshop for the Dominion. That was the absolute position, said Mr. Harbutt. In the first place owing to the manner in -which the Australian Government assisted the manufacturers of that country there had grown up a large home market which enabled them to go in for quantity production. Then New Zealand, being so close, she became a handy spot to which the manufacturers could ship their surplus goods. New Zealand was eimply becoming a dumping ground. Mr. Harbutt explained that by dumping he did not mean large reductions on the price at which the Australian manufacturers were selling to the wholesale trade in Australia; the evil lay in another direction. Instead of selling to the wholesale trade in New Zealand the Australian manufacturer came along and sold to the retailer at the price which in Australia was charged the wholesaler. It was of course impossible to compete against such tactics. The New Zealand manufacturers had to do their business through the customary channels. Tn Australia during the past 20 years, and more particularly during the past six years, Australia had been making a determined effort to capture the wbole manufacturing trade throughout Australasia, said Mr. Harbutt. The manufacturers were sxipported by the Government, and by every organisation throughout Australia. The cry "Austra.lia for had become the slogan in the Commonwealth. It was to %c hoped that the New Zealand Governont. now that it had put Australia en the general tariff, would, when the time camp to talk about reciprocity, place Australia under the second schedule, and not undor the same schedule as _the United Kingdom. If that were done, and Australia allowed Nfew Zealand the same then the manufacturers would not have any fault to find. A SERIOUS BtOW. TARTFF ON FRUIT. IMPORTATIONS TO CEASE. The new tariff on oranges and apples is going to ■seriously effect the local market. The yosition wa-s referred to by Mr. E. Turner (of Turners and Growers, Ltd.), thia morning as being most unfair. He severely took the Government to task for the unenviable position importers were placed in regard to consignments of apples on their way to New Zealand for the Christmas trade. When these were ordered the purchase price was based on the previous tariff rate that came into operation only a few weeks back. The result would mean serious financial lose to the importers concerned, because it was impossible to cancel the shipments. He estimated that through the latest tariff the landed cost price would be increased to the extent of a half-penny per H>. This would probably result in the fruit remaining on market until Christmas and consequently coming into competition with 'locally grown fruit, thereby proving a problem which the growers would have to face. The tar : ff on oranges, according to Mr. Turner, will mean that importations of the Australian-grown fruit will be stopped. Already he had recommended the firm that Turners and Growers, Ltd. deal with in the Commonwealth not to ship any more oranges. A shipment that arrived by the TJlimaroa yesterday, •he explained, would be the last.

ROOM FOR IMPROVEMENT.

AXOIIALY POINTED OUT. "Why not make the protection on. similar lines of goods uniform while they are about it?" queried one of the hardware manufacturers who was approached on the subject of the tariff on Australian imports. For instance, he pointedifout, gas stoves had been protected to the extent of 25 per cent, while other hardware industries received only a 20 per cent protection. Surely it would be only fair and reasonable to put them all on the same footing , of 25 per cent. The making of plumbers' and engineers' brass littinga, for instance, was an industryundertaken by a dozen firms in Auckland und a relatively large number of firms, employingjnany men, all over New Zealand —many than >vere employed in the making of >m stoves. It should certainly have the benefit of an equal protection with gas stoves, while the extra tariff would not appreciably affect the price of the imported article. There was another article, cast-iron water main fittings, which was probably the oldest hardware industry in the Dominion, and employed a great number of men, which B'iPiil'i lave hud the 1 of a 25 per cent, vielection. From a revenue point

■f vie"! ho could not understand why cast-iron pipes under nine inches were admitted free, wheu a moderate tariff, like five per cent, would help the countryall round, without putting any burden on the consumers. It would also prevent a certain amount of dumping which was taking place. SOMETHING LIKE MONOPOLY. GAS COOKERS MAY GO UP. A criticism on somewhat similar lines, from a different point of view, was evoked from Mr. Lowe, engineer of the Auckland Oas Company, in discussion of the protection of 40 per cent allowed to gas cookers and heaters. There are, he Raid, two firms in New Zealand manufacturing these articles. A very good class of article came from Australia, and a few American cookers -were on the market locally, but most of the opposition to local* industry was provided by British cookers. He noticed that the tariff on the British article had been increased from 20 per cent to 25 per cent, while a 40 per cent tariff had been substituted for 25 per cent on the Australian cookers, and it appeared to him that the advances had been quite unnecessary. With the high cost of production in Britain under post-war conditions, and the present high freights, he felt that the local manufacturer had ample protection under the old rates. The effect of the change would be to shut out both Australian and American competition, and to greatly reduce the sale of the British article. A HINT AT PERFUMES. HIGHER PRICES INEVITABLE. One of the effects of the general tariff revision, apart from the discrimination against Australia, will be an increase this Christmas time in the prices of such ; perfumes as lavender water and eau de Cologne, and cf the essences which are largely used in household cooker}'. This arises from the large increases made In 1 the excise duty on various classes ot j proof spirit, which is an extensive ingredient in the articles mentioned. One manufacturing chemist informed a "Star" reporter to-day that a steady industry which had been established in perfumes and essences had been very hard hit by the excise classification, the effect of which had been to make a 300 per cent increase in the cost of material for lavender water, and a rise of over 100 per cent in the cost of ingredients of essences. It was only by the very greatest oare that this class of manufacture could now be maintained, bo as to compete with the imported articles, and the prices had to be very materially advanced. TOBACCO. An alteration in the tariff is evidently designed to encourage local production of tobacco. Formerly N~ew Zealand-grown tobacco paid 1/ per pound duty. Under the new tariff as originally submitted this was increased to 2/6 per pound. An increase of 150 per cent in duty was not considered an encouragement to local industry, so a deputation waited upon the Government to see if the proposed increase in duty could be taken off. This has now been done, ns iNew Zealandgrown tobacco, with a mixture of not more than 25 per cent of imported leaf, will now pay the same duty as formerly, namely, 1/ per pound. This is important to the Auckland district, owing to the fact that tobacco is now being grown at Riverhead. Last year 19 acr°s were put under this crop, and the results were so satisfactory that this season 52 acres are to ho put under tobacco. It is claimed that the return per acre from tobacco makes it a' remunerative crop to the grower: therefore if the industry can be developed it will be a big thing for the man on the land.